8-K 1 eightk063007.txt 2ND QUARTER 2007 Microsoft Word 10.0.2627; UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------------------------------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 19, 2007 HEARTLAND EXPRESS, INC. (Exact name of registrant as specified in its charter) Commission File Number - 0-15087 NEVADA 93-0926999 (State of other Jurisdiction (IRS Employer ID No.) of Incorporation) 901 NORTH KANSAS AVE 52317 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number (including area code): 319-626-3600 Item 9.01. Financial Statements and Exhibits Exhibit 99.1 - Heartland Express, Inc. press release dated July 19, 2007 with respect to the Company's financial results for the quarter ended June 30, 2007 Item 2.02. Results of Operations and Financial Condition. On July 19, 2007, Heartland Express, Inc. announced its financial results for the quarter ended June 30, 2007. The press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned thereunto duly authorized. HEARTLAND EXPRESS, INC. Date: July 19, 2007 BY:/s/John P. Cosaert ------------------ JOHN P. COSAERT Vice-President Finance and Treasurer Exhibit No. 99.1 Thursday, July 19, 2007, For Immediate Release Press Release Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of 2007. CORALVILLE, IOWA - July 19, 2007 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter ended June 30, 2007. Operating revenues for the quarter increased 4.2% to $149.1 million from $143.1 million in the second quarter of 2006. Operating income for the quarter was negatively impacted by a $5.6 million decrease in gains on disposal of property and equipment. Therefore, net income decreased 19.9% to $19.8 million from $24.8 million in the 2006 period. Earnings per share were $0.20 compared to $0.25 for the second quarter of 2006. For the six months ended June 30, 2007, operating revenues increased 5.2% to $292.5 from $278.1 during the same period in 2006. Operating income for the six month period was negatively impacted by a $3.0 million decrease in gains on disposal of property and equipment. Therefore, net income decreased 4.7% to $42.4 million from $44.5 million in the 2006 period. Earnings per share were $0.43 compared with $0.45 for the 2006 period. For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of operating revenues) of 81.2% and a 13.3% net margin. The Company reported an operating ratio of 79.7% and a 14.5% net margin for the six months ended June 30, 2007. During the quarter, Heartland Express paid a special dividend of $2.00 per share in addition to its regular quarterly cash dividend of $0.02 per share. This dividend in the amount of $198.5 million was paid on May 31, 2007 to shareholders of record at the close of business on May 24, 2007. The Company has now paid cash dividends of $220.8 million over the past sixteen consecutive quarters. The Company ended the second quarter with cash, cash equivalents, and short-term investments of $172.8 million, a $158.5 million decrease from the $331.3 million reported on December 31, 2006 primarily due to the special dividend paid. The Company's balance sheet continues to be debt-free with total assets of $513.7 million. The average age of the Company's tractor fleet was 1.6 years at June 30, 2007, while the average age of the its trailer fleet was 3.4 years. The Company took delivery of 165 new International tractors and 300 new Wabash trailers during the quarter. The Company was recently recognized by Sears Holding Corporation as their 2006 Supplier of the Year, Federal Express Corporation as their 2006 Truckload Carrier of the Year, and Wal-mart Transportation LLC as 2006 Truckload Carrier of the Year. In addition, the Company is pleased to announce the completion of its Phoenix, Arizona operational and shop facility during the quarter. The facility will serve as the Company's base of operations for its Western United States transportation services. This past week the Company moved to its new corporate headquarters in North Liberty, Iowa. The new facility consolidates our corporate headquarters employees into one building and will accommodate future growth. A new shop facility adjacent to the corporate facility was completed and occupied prior to quarter end. This press release may contain statements that might be considered as forward-looking statements or predictions of future operations. Such statements are based on management's belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties. Actual events may differ from these expectations as specified from time to time in filings with the Securities and Exchange Commission. Contact: Heartland Express, Inc. Mike Gerdin, President John Cosaert, Chief Financial Officer 319-626-3600 HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three months ended Six months ended June 30, June 30, 2007 2006 2007 2006 ------------- ------------- ------------- ------------- OPERATING REVENUE ............................ $ 149,103,425 $ 143,058,628 $ 292,532,451 $ 278,057,927 ------------- ------------- ------------- ------------- OPERATING EXPENSES: Salaries, wages, benefits ................. $ 50,950,587 $ 46,040,770 $ 98,964,316 $ 92,411,352 Rent and purchased transportation ......... 5,643,406 6,772,305 10,865,171 12,971,977 Fuel ...................................... 39,696,911 37,789,391 76,510,208 70,750,409 Operations and maintenance ................ 3,499,310 3,358,967 6,703,360 6,305,700 Operating taxes and licenses .............. 2,338,260 2,203,726 4,618,618 4,270,893 Insurance and claims ...................... 5,687,899 4,835,933 11,277,730 8,922,782 Communications and utilities .............. 1,013,024 943,092 1,868,942 1,895,431 Depreciation .............................. 11,876,953 11,181,612 23,580,708 21,359,271 Other operating expenses .................. 4,439,034 4,158,378 8,564,157 8,356,007 Gain on disposal of property & equipment ................... (4,111,910) (9,724,303) (9,778,152) (12,783,540) ------------- ------------- ------------- ------------- 121,033,474 107,559,871 233,175,058 214,460,282 ------------- ------------- ------------- ------------- Operating income ........................ 28,069,951 35,498,757 59,357,393 63,597,645 Interest income ........................... 2,905,704 2,906,972 6,221,768 5,412,919 ------------- ------------- ------------- ------------- Income before income taxes ................ 30,975,655 38,405,729 65,579,161 69,010,564 Federal and state income taxes ............. 11,134,509 13,634,068 23,184,714 24,498,752 ------------- ------------- ------------- ------------- Net income ................................ $ 19,841,146 $ 24,771,661 42,394,447 44,511,812 ============= ============= ============= ============= Earnings per share ........................ $ 0.20 $ 0.25 $ 0.43 $ 0.45 ============= ============= ============= ============= Weighted average shares outstanding ............................... 98,251,889 98,428,589 98,251,889 98,428,589 ============= ============= ============= ============= Dividends declared per share .............. $ 2.02 $ 0.02 $ 2.04 $ 0.04 ============= ============= ============= =============
HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31, ASSETS .......................................... 2007 2006 ------------ ------------ (unaudited) CURRENT ASSETS Cash and cash equivalents .................. $ 10,579,024 $ 8,458,882 Short-term investments ..................... 162,240,604 322,829,306 Trade receivables .......................... 48,741,950 43,499,482 Prepaid tires .............................. 5,050,605 5,075,566 Other prepaid expenses ..................... 4,804,333 1,635,077 Deferred income taxes ...................... 29,712,000 29,177,000 ------------ ------------ Total current assets .......... $261,128,516 $410,675,313 ------------ ------------ PROPERTY AND EQUIPMENT .......................... $351,672,008 344,323,852 Less accumulated depreciation .............. 109,607,867 96,293,111 ------------ ------------ $242,064,141 $248,030,741 ------------ ------------ OTHER ASSETS .................................... $ 10,555,412 $ 10,363,658 ------------ ------------ $513,748,069 $669,069,712 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable & accrued liabilities ..... $ 12,188,502 15,075,647 Compensation & benefits .................... 14,655,037 15,028,378 Income taxes payable ....................... 470,127 21,418,610 Insurance accruals ......................... 58,986,754 56,651,853 Other accruals ............................. 8,269,890 8,248,415 ------------ ------------ Total current liabilities .......... $ 94,570,310 116,422,903 ------------ ------------ LONG-TERM LIABILITIES Income taxes payable ....................... $ 35,537,701 -- Deferred income taxes ...................... 51,391,000 57,623,000 ------------ ------------ 86,928,701 57,623,000 ------------ ------------ COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Capital stock: common, $.01 par value; authorized 395,000,000 shares; issued and outstanding 98,251,889 ..................... $ 982,519 982,519 Additional paid-in capital ................. 438,701 376,029 Retained earnings .......................... 330,827,838 493,665,261 ------------ ------------ $332,249,058 $495,023,809 ------------ ------------ $513,748,069 $669,069,712 ============ ============
END OF REPORT